CenterPoint Energy 2014 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2014 CenterPoint Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 197

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197

The total income tax benefit recognized related to LTIPs was $7 million for each of the years ended December 31, 2014 , 2013 and 2012
.
No
compensation cost related to LTIPs was capitalized as a part of inventory or fixed assets in 2014 , 2013 or 2012
. The actual tax benefit
realized for tax deductions related to LTIPs totaled $13 million , $13 million and $14 million for 2014 , 2013 and 2012 , respectively.
Compensation costs for the performance and stock awards granted under LTIPs are measured using fair value and expected achievement
levels on the grant date. For performance awards with operational goals, the achievement levels are revised as goals are evaluated. The fair
value of awards granted to employees is based on the closing stock price of CenterPoint Energy’
s common stock on the grant date. The
compensation expense is recorded on a straight-
line basis over the vesting period. Forfeitures are estimated on the date of grant based on
historical averages, and estimates are updated periodically throughout the vesting period.
The following tables summarize CenterPoint Energy’s LTIP activity for 2014 :
Stock Options
Cash received from stock options exercised was $1 million , $3 million and $3 million for 2014 , 2013 and 2012 , respectively.
CenterPoint Energy has not issued stock options since 2004.
Performance Awards
The outstanding and non-
vested shares displayed in the table above assumes that shares are issued at the maximum performance level. The
aggregate intrinsic value reflects the impact of current expectations of achievement and stock price.
86
Outstanding Options
Year Ended December 31, 2014
Shares
(Thousands)
Weighted-
Average
Exercise Price
Remaining
Average
Contractual
Life (Years)
Aggregate
Intrinsic
Value (Millions)
Outstanding at December 31, 2013
120
$
10.93
Exercised
(120
)
10.93
Outstanding at December 31, 2014
—
—
—
$
—
Exercisable at December 31, 2014
—
—
—
—
Outstanding and Non-Vested Shares
Year Ended December 31, 2014
Shares
(Thousands)
Weighted-
Average
Grant Date
Fair Value
Remaining
Average
Contractual
Life (Years)
Aggregate
Intrinsic
Value (Millions)
Outstanding at December 31, 2013
2,703
$
18.17
Granted
1,198
23.70
Forfeited or cancelled
(515
)
21.09
Vested and released to participants
(926
)
15.50
Outstanding at December 31, 2014
2,460
21.26
1.1
$
40